Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
(z)
HK Listco Ltd
Financial statements for the year ended 31 December 2023
Where investment properties are carried at their fair value in accordance with note 1(j), the amount
of deferred tax recognised is measured using the tax rates that would apply on sale of those assets at
their carrying value at the reporting date, unless the property is depreciable and is held within a
business model whose objective is to consume substantially all of the economic benefits embodied in
the property over time, rather than through sale. In all other cases, the measurement of deferred
tax reflects the tax consequences that would follow from the manner in which the group expects, at
the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset only if certain criteria are met.
Provisions and contingent liabilities
Generally provisions are determined by discounting the expected future cash flows at a pre-tax rate
that reflects current market assessment of the time value of money and the risks specific to the
liability.
A provision for warranties is recognised when the underlying products or services are sold, based on
historical warranty data and a weighting of possible outcomes against their associated probabilities.
A provision for onerous contracts is measured at the present value of the lower of the expected cost
of terminating the contract and the expected net cost of continuing with the contract, which is
determined based on the incremental costs of fulfilling the obligation under that contract and an
allocation of other costs directly related to fulfilling that contract. Before a provision is established,
the group recognises any impairment loss on the assets associated with that contract (see note
1(n)(iii)).
Where it is not probable that an outflow of economic benefits will be required, or the amount
cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the
probability of outflow of economic benefits is remote. Possible obligations, whose existence will only
be confirmed by the occurrence or non-occurrence of one or more future events are also disclosed
as contingent liabilities unless the probability of outflow of economic benefits is remote.
Where some or all of the expenditure required to settle a provision is expected to be reimbursed by
another party, a separate asset is recognised for any expected reimbursement that would be
virtually certain. The amount recognised for the reimbursement is limited to the carrying amount of
the provision.
(aa)
Revenue and other income
(i)
HKFRS 15.119(c)
HKFRS 15.126(a)
HKFRS 15.119(c)
105
Income is classified by the group as revenue when it arises from the sale of goods, the provision of
services or the use by others of the group's assets under leases in the ordinary course of the
group's business.
Further details of the group's revenue and other income recognition policies are as follows:
Revenue from contracts with customers
The group is the principal for its revenue transactions and recognises revenue on a gross basis,
including the sale of electronic products that are sourced externally. In determining whether the
group acts as a principal or as an agent, it considers whether it obtains control of the products
before they are transferred to the customers. Control refers to the group's ability to direct the use
of and obtain substantially all of the remaining benefits from the products 105.
Revenue is recognised when control over a product or service is transferred to the customer at the
amount of promised consideration to which the group is expected to be entitled, excluding those
amounts collected on behalf of third parties such as value added tax or other sales taxes.
In disclosing the nature of goods or services that an entity has promised to transfer, where relevant paragraph 119(c) of HKFRS 15
also require the entity to highlight any performance obligations to arrange for another party to transfer goods or services (i.e. where
the entity is acting as an agent).
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